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Negotiation
Techniques
DR HJH AIDA NASIRAH ABDULLAH
NEGOTIATION 7e
Lewicki Saunders
Barry
1-1
2-1
Week 7
COGNITIVE BIASES IN
NEGOTIATION
5-2
5-3
COGNITIVE BIASES
The winners
Irrational
curse
escalation of
Overconfidence
commitment
Mythical fixed-pie The law of small
numbers
beliefs
Self-serving
Anchoring and
biases
adjustment
Endowment
Issue framing
effect
and risk
Ignoring others
Availability of
cognitions
information
2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor
use. Not authorized for sale or distribution in any manner.
5-4
IRRATIONAL ESCALATION OF
COMMITMENT AND MYTHICAL
FIXED-PIE BELIEFS
Irrational escalation of commitment
Negotiators maintain commitment to a course
of action even when that commitment
constitutes irrational behavior
Mythical fixed-pie beliefs
Negotiators assume that all negotiations (not
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5-6
AVAILABILITY OF INFORMATION
AND THE WINNERS CURSE
Availability of information
Operates when information that is presented
in vivid or attention-getting ways becomes
easy to recall.
Becomes central and critical in evaluating
events and options
The winners curse
The tendency to settle quickly on an item
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OVERCONFIDENCE
AND THE LAW OF SMALL NUMBERS
Overconfidence
The tendency of negotiators to believe that
their ability to be correct or accurate is
greater than is actually true
The law of small numbers
The tendency of people to draw conclusions
from small sample sizes
The smaller sample, the greater the
possibility that past lessons will be
erroneously used to infer what will happen in
the future
2015 by McGraw-Hill Education. This is proprietary material solely for
authorized instructor use. Not authorized for sale or distribution in any
manner.
5-8
SELF-SERVING BIASES
AND ENDOWMENT EFFECT
Self-serving biases
People often explain another persons
behavior by making attributions, either to the
person or to the situation
The tendency, known as fundamental
attribution error, is to:
Overestimate the role of personal or internal
factors
Underestimate the role of situational or external
factors
Endowment effect
The tendency to overvalue something you
ownEducation.
or believe
possess
2015 by McGraw-Hill
This is proprietaryyou
material solely
for
authorized instructor use. Not authorized for sale or distribution in any
manner.
5-9
5-10
5-11
5-12
negative emotions
Positive emotions generally have
positive consequences for negotiations
They are more likely to lead the parties
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during negotiation
Positive feelings result from favorable social
comparison
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as competitive or distributive
They may undermine a negotiators ability to
analyze the situation accurately, which
adversely affects individual outcomes
They may lead parties to escalate the conflict
They may lead parties to retaliate and may
thwart integrative outcomes
2015 by McGraw-Hill Education. This is proprietary material solely for
authorized instructor use. Not authorized for sale or distribution in any
manner.
5-15
competitive mind-set
Negative emotions may result from an
impasse
Negative emotions may result from the
prospect of beginning a negotiation
Effects of positive and negative
emotion
outcomes
Negative feelings may elicit beneficial
2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor
use. Not authorized for sale or distribution in any manner.
5-16